November 2015

Investor Presentation

SAFE HARBOR

2

This presentation includes forward-looking statements. Wayfair Inc. (“Wayfair” or the “Company”) has

based these forward-looking statements largely on its current expectations and projections about future

events and financial trends affecting its business. Forward-looking statements should not be read as

guarantees of future performance or results, and will not necessarily be accurate indications of the times at,

or by, which such performance or results will be achieved. Forward-looking statements are based on

information available at the date of this presentation and management’s good faith belief as of such date

with respect to future events, and are subject to risks and uncertainties that could cause actual

performance or results to differ materially from those expressed in or suggested by the forward-looking

statements. Important factors that could cause such differences include, but are not limited to: our ability to

acquire new customers, our ability to sustain and/or manage our growth, our ability to increase our net

revenue per active customer, our ability to build and maintain strong brands and other factors discussed

under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of

Operations” in periodic filings with the Securities and Exchange Commission (the “SEC”). In addition, in this

presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,”

“predict,” “potential” and similar expressions, as they relate to the Company, business and management,

are intended to identify forward-looking statements. In light of these risks and uncertainties, the future

events and circumstances discussed in this presentation may not occur, and actual results could differ

materially from those anticipated or implied in the forward-looking statements. Forward-looking statements

speak only as of the date of this presentation. You should not put undue reliance on any forward-looking

statement. The Company assumes no obligation to update any forward-looking statements to reflect actual

results, changes in assumptions or changes in other factors affecting future performance or results, except

to the extent required by applicable laws. If the Company updates one or more forward-looking statements,

no inference should be drawn that it will make additional updates with respect to those or other forward-

looking statements.

OUR MISSION

3

To transform the way people

shop for their homes

A CLEAR ONLINE LEADER IN HOME GOODS

4

MASSIVE ONLINE CATALOG with over 7,000,000 home products

SUPPLIER DIRECT FULFILLMENT NETWORK connecting over 7,000 suppliers

$1,919 MILLION of LTM net revenue with minimal inventory

91% Q3 YoY GROWTH in direct retail, 77% total growth

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 LTM

LARGE SCALE WITH SIGNIFICANT GROWTH

5

240+ Niche Websites

Platform Development

Brand

Consolidation

Brand

Building

$1,319

$916

$601 $517

• Founded as CSN STORES in 2002

• BOOTSTRAPPED for the first 9 years

• FOUNDER-LED since inception

• REBRANDED AS WAYFAIR in 2011

• 91% Q3 YoY DIRECT RETAIL GROWTH; 77% total LTM growth

Other Direct Retail

$1,919

FIVE DISTINCT HOME BRANDS

6

Typical customer: 35 to 65 year old woman with an

annual household income of $60,000 to $175,000

Est. 2011 Est. 2011 Est. 2006 Est. 2014 Acq. 2013

LARGE, HIGHLY FRAGMENTED MARKET MOVING ONLINE

7

Source: Euromonitor for market size, comScore for online statistics, eMarketer for millennial statistics, Furniture Today

** Top 10 Retailers: Williams Sonoma, Ikea, Ashley’s, Berkshire Hathaway Companies, Rooms to Go, Pier 1, Restoration Hardware, Mattress Firm, Raymour &

Flanigan, La-Z-Boy

**Millennials defined as individuals currently between the ages of 18 and 32. Based on 2013 data

Growth Potential of U.S.

Home Goods Market

2013 2023

15%-

30% $45

$297

$233

$16

7%

($B)

Online Other

$90

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013

Total Furniture

Sales by Retailer

$233

Other Top 102

7%

15%

54%

Home Goods Apparel ConsumerElectronics

Significant Upside in

Online Penetration

2013 Online Penetration of Selected

Verticals

WELL POSITIONED RELATIVE TO OTHER RETAILERS

8

High End ($175K+)

Mass Market ($60K-$175K)

Low End ($60K)

Design Centers

HOME SHOPPERS DESIRE UNIQUENESS

9

#1 in 42”

LCD TVs

#2 in 42”

LCD TVs

#3 in 42”

LCD TVs

#4 in 42”

LCD TVs

We do not all sleep in the same style bed…

...but a lot of us own the same TV and

view it as reassuring

HOME IS SHOPPED VISUALLY

10

Inspiration

Discovery &

Education

Search Based Site

HOME IS SHOPPED VISUALLY

11

CPG Category Example: Paper Towels Home Category Example: Lighting

DIFFICULT TO INVENTORY

12

Source: 2013 data from Freedonia, Fisher International, Euromonitor

INDUSTRY SIZE: $7B INDUSTRY SIZE: $7B

Operational Platform Technology Platform

REQUIRES CUSTOM-BUILT TECHNOLOGY AND OPERATIONAL PLATFORM

13

• Proprietary and purpose built

• Real-time data, dynamic changes

• Personalization

• Mobile optimized

• Running at massive scale

• 380+ engineers / data scientists

• Over 22 million orders since

inception

• 2014 North America average time

to ship of 2.2 days

• Extensive supplier integration and

direct fulfillment network

• Proprietary transportation network

• Minimal inventory and capex

• 900+ customer service reps

Source: eMarketer as of 2014. 1 Includes impact of smartphones and tablets. 2 Direct Retail orders generated primarily through the sites of our five brands.

PLATFORM SHIFT TO MOBILE AMPLIFIES OPPORTUNITY

SIGNIFICANT OPPORTUNITY GOING FORWARD

14

US eCommerce Mobile Sales ($B)1

$41

$131

2013 2018

47% Joss & Main orders via

mobile in Q3 2015

35%

Direct Retail orders via mobile in Q3 20152

26.2% CAGR

INCREASING PERSONALIZATION DRIVES GROWTH AND REPEAT BEHAVIOR

15

“Tikes’ top picks: Playroom furniture

and toys by KidKraft”

“Prep for in-laws and overnight guests

with holiday furniture for every room”

“Purrr-fectly affordable finds for

cats (and feline fans)”

Emails from 12/2; Ability to send 1M+ variations

TECHNOLOGY AND OPERATIONS ARE RUN AT SCALE: 1 DAY OF ORDERS

16

SCALE DRIVES POWERFUL NETWORKS EFFECTS

17

2,858

4,591

Q3 2014 Q3 2015

(in thousands)

Advertising Spend

173

245

LTM Q3'14 LTM Q3'15

50%

55%

Q3 2014 Q3 2015

(as % of total orders)

Net Revenue

$227 $217

$978

$1,701

LTM Q3'14 LTM Q3'15

41%

74%

61%

1 Defined as customers who have purchased at least once on our brands’ sites during the preceding 12 month period. 2 Defined as total orders delivered from repeat customers.

Active Customers 1 Repeat Orders 2

59%

$1,206

$1,919 Direct Retail

Other

($M)

Total

Enables Strategic

Investment

Fuels More

Revenue

More Customers

More Repeat

Purchases

($M)

Most 2011

and 2012

customers

first

purchased

before site

rebranding

Wayfair.com Gross Revenue Per Customer Per Month

INVESTMENT IN ADVERTISTING SPEND RESULTS IN HIGHER REVENUE/CUSTOMER…

18

Re

ve

nu

e/C

us

tom

er/

Mo

nth

(in

clu

de

s a

ll cu

sto

mers

)

Time Since Initial Purchase

x$

2x$

4x$

6x$

8x$

10x$

12x$

14x$

16x$

18x$

20x$

22x$

31-6

0 D

ays

61-9

0 D

ays

91-1

20

Days

121

-15

0 D

ays

151

-18

0 D

ays

181

-21

0 D

ays

211

-24

0 D

ays

241

-27

0 D

ays

271

-30

0 D

ays

301

-33

0 D

ays

331

-36

0 D

ays

361

-39

0 D

ays

391

-42

0 D

ays

421

-45

0 D

ays

451

-48

0 D

ays

481

-51

0 D

ays

511

-54

0 D

ays

541

-57

0 D

ays

571

-60

0 D

ays

601

-63

0 D

ays

631

-66

0 D

ays

661

-69

0 D

ays

691

-72

0 D

ays

721

- 7

50

Da

ys

751

- 7

80

Da

ys

781

- 8

10

Da

ys

811

- 8

40

Da

ys

841

- 8

70

Da

ys

871

- 9

00

Da

ys

901

- 9

30

Da

ys

931

- 9

60

Da

ys

961

- 9

90

Da

ys

991

- 1

02

0 D

ays

102

1 -

10

50 D

ays

105

1 -

10

80 D

ays

108

1 -

11

10 D

ays

111

1 -

11

40 D

ays

114

1 -

11

70 D

ays

117

1 -

12

00 D

ays

120

1 -

12

30 D

ays

123

1 -

12

60 D

ays

126

1 -

12

90 D

ays

129

1 -

13

20 D

ays

132

1 -

13

50 D

ays

135

1 -

13

80 D

ays

138

1 -

14

10 D

ays

141

1 -

14

40 D

ays

144

1 -

14

70 D

ays

147

1 -

15

00 D

ays

2011 2012 2013 2014 2015

• Customers acquired in more recent periods

consistently spend more over time than

customers acquired in older periods

• For example in the 6th month post their initial

order 2014 customers spent >2x 2011

customers

31-60

Days

151-180

Days

331-360

Days

511-540

Days

691-720

Days

871-900

Days

1,051-1,080

Days

1,231-1,260

Days

1,411-1,440

Days

2012 2013 2011

2014 2015

…AND GROWING AWARENESS

19

Source: Hanover Research

1 Aided Brand Awareness as of September 2015.

Google Trends – Interest in “Wayfair” over time Grew to 67% brand awareness since Wayfair launch in 20111

2014 2006 2008 2010 2012 2015

$300 $305 $313 $315

$322 $323 $332

$342 $342 $346 $357

$371

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

1.30 1.37 1.51

1.77

2.09

2.41 2.64

2.86

3.22

3.60

4.04

4.59

CUSTOMER ECONOMICS CONTINUE TO IMPROVE- STRONG CUSTOMER ACQUISITION

20

Net Revenue / Active Customer Active Customers (mil)

362 293

365

468

623

561 524

659 846 829 850

1,042

243 263

337

416

549

577 560

654

856

968

1,109

1,282

CUSTOMER ECONOMICS CONTINUE TO IMPROVE- GROWING REPEAT ORDERS

21

40.2%

47.3% 48.0% 47.1% 46.8%

50.7% 51.6%

49.8% 50.3%

53.9%

56.6% 55.2%

% Orders from Repeat Customers

Orders from repeat customers (’000s) Orders from new customers (’000s)

Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

CAPITAL EFFICIENT WITH MINIMAL INVENTORY

22

Capital Efficient1 Minimal Inventory

1.4

37.9

Days Receivable Days Payable

$916

$1,319

$1,991

$15 $20 $23

2013 2014 LTM

Net Revenue Inventory

($M)

FCF Performance Consistently Better than Adjusted EBITDA

1 Average of last four quarters.

Long-Term Target

LONG TERM TARGET MODEL

23

Net Revenue 100% 100% 100% 100%

Gross Margin 24.5% 23.6% 23.8% 25 - 27%

Customer Service + Merchant

Fees 3.9% 4.1% 3.5% 4%

Advertising 11.8% 14.5% 11.9% 6 - 8%

Merchandising, Marketing, and

Sales 3.7% 3.9% 4.0% 2 - 3%

Operations, Technology, General &

Administrative 5.4% 5.9% 4.7% 3 - 4%

Total Operating Expenses 24.8% 28.4% 24.1% 15 - 19%

Adjusted EBITDA (0.3%) (4.7%) (0.2%) 8 - 10%

Note: Cost of Goods Sold, Merchandising, Marketing, and Operations, Technology, General & Administrative have been adjusted to exclude equity based

compensation expenses and depreciation and amortization expense. See GAAP to Non-GAAP Reconciliation” Appendix.

Prim

arily

he

adco

unt

2013 2014 Q3 2015

ADDITIONAL GROWTH STRATEGIES

CONTINUE BUILDING LEADING RETAIL HOME BRANDS

• Acquire More Customers

• Invest in Consumer Experience

• Increase Repeat Purchasing

• Add New Suppliers

• Invest in Technology and Operations

• Expand Internationally

• Pursue Strategic Acquisitions

• Opportunistically Launch New Brands

WELL DEFINED GROWTH STRATEGY

24

RECONCILIATION OF ADJUSTED EBITDA ($ in millions)

26

Net Loss ($15.526) ($148.098) ($15.478)

Depreciation and Amortization $13.091 $22.003 $9.207

Equity-Based Compensation - $63.244 $7.985

Interest Income, net ($0.245) ($0.350) ($0.325)

Other (Income) Expense, net ($0.294) $0.489 ($2.746)

Taxes $0.046 $0.175 ($0.088)

Adjusted EBITDA ($2.928) ($62.537) ($1.445)

2013 2014 Q3 2015

RECONCILIATION OF FREE CASH FLOW ($ in millions)

27

Net Cash Provided by Operating

Activities, Net of Acquisition $34.413 $11.692 $51.504

Purchase of Property, Equipment and

Leasehold Improvements ($6.739) ($39.422) ($11.491)

Site and Software Development Costs ($9.040) ($14.130) ($4.681)

Free Cash Flow $18.634 ($41.860) $35.332

2013 2014 Q3 2015

Illustrative Customer Acquisition Cost

28

Notes:

1. Assumes partner advertising spend is 11.18% of Other revenue as seen in the first six months of 2014 (as disclosed

in our S-1).

2. Calculated as (1-Repeat Rate)*Total Orders.

3. Calculated as Direct Retail Ad Spend divided by Implied “Gross” New Customers.

4. Represents 2014 gross margin of 23.6% less an assumed 4.1% for customer service and processing fees.

(All units in 000s, except per customer figures)

2014

Total Advertising Spend $191,284

Assumed Partner Ad Spend (1) $24,300

Direct Retail Ad Spend $166,984

Active Customers 3,217

Total Orders 5,237

% of Orders from Repeat Customers 50.5%

Implied "Gross" New Customers (2) 2,590

Customer Acquisition Cost (3) $64

Annual Direct Retail Revenue per Customer $342

Annual Contribution per Customer (4) $67

Contribution Margin 19.5%